CYBERJAYA: Cabinet ministers could see another round of pay cuts if global economic uncertainties persist due to the worsening Middle East crisis, says Datuk Seri Anwar Ibrahim.
While the focus should be on performance rather than ministers’ salaries, the Prime Minister said the suggestion for a pay cut could be considered if the situation demands it.
“What matters is that they serve well. As for me, I have no issue with not taking a salary. But salary is their right as long as they perform well and I think that is reasonable.
“However, it (salary cut) can be considered if the economic situation becomes more severe,” said Anwar after attending Friday prayers.
He was asked whether Malaysia would follow Indonesia’s proposal to cut ministerial salaries as part of broader fiscal tightening measures.
In December 2022, Anwar announced that his newly formed Cabinet had agreed to take a 20% pay cut from their monthly salary.
Last October, when tabling Budget 2026, Anwar said the ministers would continue with their 20% pay cut.
He also has forgone his salary as prime minister and finance minister after assuming the posts in November 2022.
Meanwhile, Anwar confirmed that the first of seven Malaysian-owned vessels has arrived safely in the country following its passage through the contested Strait of Hormuz.
He said that one more vessel is currently nearing Malaysian waters, while the status of the remaining ships is being monitored by the government.
Anwar acknowledged there could be some challenges with regard to the remaining vessels following the latest development affecting the strait.
“In terms of approvals, Iran has approved seven, but one has technical issues and cannot depart from the port.
“Given the latest developments, we are facing some challenges,” he said.
The seven Malaysian vessels were among hundreds stranded in the Persian Gulf and near the Strait of Hormuz following the US-Iran conflict that began on Feb 28.
On April 12, US President Donald Trump announced a US naval blockade of the strait targeting Iranian shipping and ports, further complicating the situation.
On a separate matter, Anwar said he will hold talks with the Investment, Trade and Industry Ministry (Miti) on calls to re-evaluate conditions for the setting up of electric vehicle (EV) factories in the country.
On Thursday, Perak state industry and investment committee chairman Loh Sze Yee urged the government to re-evaluate the conditions after Chinese EV manufacturer BYD’s plan to invest in a plant in Tanjung Malim hit a snag due to disagreements over manufacturing terms imposed by Miti.
Separately, in a Facebook post yesterday, Anwar noted that Malaysia’s infrastructure strength and supply chain efficiency were among the key factors behind the success of Amazon Web Services’ (AWS) investments in the country.
He said the government will continue strengthening existing policies to ensure long-term benefits from this strategic investment.
Anwar said this after receiving a courtesy visit from AWS vice-president for public policy Michael Punke and his delegation, in conjunction with the one-year milestone of the AWS Region launch in Malaysia.
